The Maharashtra State Co-Op.
Cotton Growers' Marketing Federation Ltd.

No.CTN/SS/2001-2002/Broker/
02-02-2002

Sub: Registration and responsiblity of Brokers
Ref: Our Letter No. CTN/SS/99-00/Brokers 28-03-2001

 The terms and conditions for registration and renewal of registration for brokers have been decided vide letter under reference. Some of the revised terms and conditions for registration and renewal of registration for brokers are as follows:-
(a) REGISTRATION: 
1. Broker should become normal member of MSCCGMF by paying Rs.10/- as a nominal mambership fee, for which he has to apply in the prescribed form.
2. Broker should have his own office with telephone and fax facilities and necessary knowledge of cotton bussiness.
3. Broker should pay refundable deposit without interest of Rs.5000/- if he is a proprietor of the firm or Rs.10000/- if he is partner of the firm.
4. Broker should also attach his photograph to the application form.
5. Broker should bring at least one confirm offer of at least 100 bales with the application in the prescribed format duly filled.
6. Newly registered broker entitled for brokerage i.e. 0.45% calculated on actual bale value (excluding S.T and Cash Discount amount) as indicated in the sale invoice to be applicable to all varieties of cotton and categories/grades.
7. MSCCGMF holds absolute right to consider or refuse the application of the broker for registration of brokership.

(b) PROCEDURE:
1. After completion of deliveries Broker should produce the bills enclosed with delivery completion certificate and copies of 'C' or 'BC' forms submitted or certificate of having paid the M.S.T
2. If the broker does not bring any business for 3 years Federation will keep the option to cancel the registration and his deposit will be refunded without interest after verifying the dies if any.
3. The Federation keeps the option to withhold the amount of brokerage if any buyer makes the default and broker does not cooperate for recovery  of amount due for buyer.
4. The Federation will not pay any amount of brokerage to the person who is not duly authorized by the broker.
5. The existing registered brokers for a period on year from 01-01-2002 to 31-12-2002 have a option to get registered for a period of three years, to exercise this option such broker shall have to pay additional Rs.300/- till 15th Feb-2002 and if such broker shall have to pay the additional amount till 15th Feb-2002 then he shall have to pay penalty of Rs.200/- after 15th Feb-2002 to 28th Feb-2002 in addition to above Rs.300/-
6. Hereafter the renewal of the broker registration will be for a period of three years, for renewal of registration broker should approach the Federation before 31st December and pay Rs.500/-. In case of failure of paying these Rs.500/- upto 31st December then he shall have to pay Rs.750/- till 31st January as broker renewal fees. In the event of non-renewal of the broker registered by the end of January as stated above, this registration will stand automatically cancelled after end of January and thereafter he has to apply for new registration.
7. The MSCCGMF reserve the right to cancel the registration of broker at any time without notice if he is found to have indulged in any act which is harmful and prejudicial to the interests of the Federation directly or indirectly. In such cases, his deposit is also liable to be forfeited.

(c) RESPONSIBILITY:
1. Broker should make efforts to bring the business to Federation.
2. Broker should apprise the Federation about market developments, supply, demand position in market.
3. It will be the broker's responsibility to facilitate the deposit of EMD  and timely selection of cotton and submission of approval reports to Federation's concerned authority.
4. The broker is expected to make efforts to fulfill the contract satisfactorily in the stipulated time. In case the contract is not fulfilled and Federation incurs losses in resale, then it will be binding upon broker to cooperate in recovering such losses. Under the circumstances, broker shall make every effort to recover the losses from buyer.
5. The Registration part (a) is for new brokers seeking for registration. Part (b) of procedure and Part (c) of responsibilities are for all brokers who are already registered as well as who are seeking registration.

General Manager (S & S)

cc to :-1.General Manager (A/F) Mumbai-15.
2.All Buyers,
3. Brokers Association, Akola/Mumbai.